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USD/JPY upside getting difficult as US economic data rolls over
USD/JPY is on the backfoot at the start of June, hit by narrowing yield differentials and a whiff of concern about the trajectory for the US economy. Data releases in the coming days may provide clarity on the answer, providing ample two-way price risk given elevated levels of uncertainty. Asymmetric risks for US rates on display Risks for US rates were always asymmetric around these levels, with upside far harder won than downside given the higher rates go the more likely it will spark a hard economic landing. We saw that playout on Monday with the ISM non-manufacturing PMI sparking a massive rally across the US ... (full story)